at 2,261,439 dollars, exclusive of claims still in dispute. The Viceroy of
Canton has declared in a public document, of which we transmit herewith
a translation, together with all the correspondence upon the subject to
your Lordship, that the debts should be paid, but] has left the period for
payment to be settled, as usual, between the security merchants and the
foreigners. The former began by proposing twenty years as the term for
liquidation, but have subsequently reduced it, step by step, to nine years.
The creditors have refused even the last proposition, on the grounds,
261
first, that it is impolitic to establish the precedent of such a protracted
payment in this first settlement of a debt under the free-trade system,
which debt arises entirely out of actual transactions of trade, and so far
differs from all former debts ; and, secondly, because we wish to take this
opportunity to procure a settlement of the debts of all the insolvent
Hongs, with a view to understand our exact position with them, and to
endeavour to trade upon some safer system in future.
The debts owing by the Co-hong, whether to the Government or
to foreigners, have never been paid entirely out of their own resources ;
but chiefly by means of extra duties levied upon the principal staples of
the foreign trade ; and the Hong merchants propose to liquidate the
debts now under consideration, in a similar way. Such duties once imposed,
appear never to be taken off again, when the first occasion for them has
ceased, but to be still levied under pretext of creating a fund, called the
Consoo-Fund, to meet future exigencies of the Co-hong, whether occa
sioned by debts to the foreigners, or by demands from the Emperor, to
meet the expenses of his wars, or other extraordinary expenditure of the
State. There is no reason to suppose, however, that such a fund has ever
really existed, or that the Chinese Authorities have ever recognized it ;
but they have sanctioned the imposition of duties, from time to time, for
the payment of specific debts, and have connived at their continuance to
feed, as is supposed, their own exactions. Independent of the extra
ordinary demands of the Emperor upon the security merchants, they are
exposed to almost daily extortions on the part of the local authorities,
chiefly the Hoppo, or Collector of Customs, and his subordinates, which
have always impoverished them, even when they shared in the large
certain profits of the East India Company's trade. They have incurred
heavy losses in their trading transactions since the expiration of the East
India Company's Charter ; and seem likely to suffer still more severely,
since the same parties have now to conduct a more extended business, in
competition with the intelligence and greater activity of the free-traders,
to which neither their capital nor mode of conducting commerce seem
adequate.
Considering these circumstances, your Memorialists see reason to
apprehend that any addition to the duties upon the foreign trade, merely
sufficient to liquidate the foreign debts will, without some weighty inter
position with the Imperial Government, be mainly diverted to the payment
of extraordinary demands by the Authorities on the Co-hong, which it is
known are now being urged upon that body ; and thereby not only pro
tract the settlement of our claims, but occasion an accumulation of new
debts on the part of the security merchants, which it may require more
than remonstrance on the part of the British Government, at some future
time.
Your Memorialists are aware of the difficulty of changing the
institutions and habits of a people like the Chinese ; and do not, therefore,
ask of Her Majesty's Government, to require any great or sudden
changes in the regulations under which we trade with this Empire : but
we humbly submit to your Lordship's decision, whether the Chinese
Government, so long as it shall insist upon confining our trade to so
small a number of its merchants, is not bound to take care that those
merchants have sufficient capital and probity for their trust ; and whether
on the transfer of our capital to them, in the shape of the debts in ques
tion, which becomes unavoidable in the conducting of an extensive com
merce with a monopoly of such limited means, the Imperial guarantee
does not imply earlier repayment of such capital than has been hitherto
or is now offered, or at all events, some compensation for the delay in the
shape of interest. Our experience of the Chinese people and their Rulers,
leads us confidently to infer, that the simple interposition of our own
Government with the Cabinet of Peking in so just a cause, would faci
litate the adjustment of our present claims ; and if Her Majesty's Govern
ment would further require that any future debts incurred by the Hongs
to British Subjects should be paid immediately, or at all events, within a
reasonable and defined time ; and that the Hong merchants should be
protected from the extortions of the official subordinates, we feel assured
that it would tend to lessen the hazards of our trade materially. It would
262
induce the Emperor of China to inquire into the abuses of the foreign
trade at this port, and to correct the most flagrant of them : which are the
exactions of his officers and the inefficiency of the Co-hong, the full know
ledge of which we presume to be withheld by the Canton Authorities from
the Court of Peking; and the latter effect would render no less service to
the solvent Hong merchants than to your Memorialists, and the whole of
the foreign residents in Canton.
Your Memorialists do not think it necessary to trouble your
Lordship with further details of our position as merchants in Canton, the
peculiarities of which have, doubtless, reached your Lordship through an
official channel ; and relying upon Lordship's attention to the interests of
British commerce and British merchants, to bring our request to the
favourable notice of Her Majesty's Government,
We have, &c,
(Signed)
Dent and Co., Fox, Rawson, and Co.,
Turner and Co., Nanabhoy Framjee,
Bell and Co., Eglinton Maclean, and Co.,
Lindsay and Co., Bibby, Adam, and Co.,
Dirom and Co., Gibb, Livingston, and Co.,
Daniell and Co., W. F. Gemmell and Co.,
J. and W. Craoq and Co., William Macdonald,
T. H. Layton, Robert Wise, Holiday, and Co.,
W. Henderson, William Thomas Kinsley.
Pat Stewart, Jamieson and How.
D. and M. Rustomjee,
Inclosure 3 in No. 117.
Correspondence between the Local Government, Hong Merchants, and Foreign
Merchants ; Relative to the Affairs of the Bankrupt Hing-tae Hong ; also
Report of the Proceedings of the Committee of Examination.
Messrs. Dent and others to the Governor of Canton.
A RESPECTFUL Address. Having come to Canton for commercial
purposes, we found that the Regulation allowed us to transact business with no
one but the Hong merchants. — Hing-tae is a member of the Co-hong, and judging
him, from all appearances, to be in secure circumstances, we sold our goods to
him—and he is now indebted in the large amount of a million and upwards of
dollars —which he is unable to pay.
It is out of the power of the foreigners to obtain information regarding the
internal affairs of this country, and of the proceedings and dealings of the Hong
merchants, with their own countrymen, but as they are specially appointed by
the Government to conduct the foreign trade, we are induced to place every con
fidence in their stability and honour.
Under these circumstances, we have to request that ycur Excellency will be
pleased to order an early payment of the Co-hong, in such manner as your Excel
lency may deem fit.
We have, &c,
The Governor of Canton to Messrs. Dent and others.
TANG, Governor of Kwangtung and Kwangse, issues this order to the
Hong merchants, requiring them to be fully informed thereon.
On the 21st of April, I received from the English and other merchants, Dent
and others, the following address. [See foregoing document.]
This having come before me, the Governor, I have examined the subject,
and find, that heretofore, Hong merchants have always been forbidden to incur
debts to foreigners, and that in repeated instances on record, they have been
severely punished for so doing. And with regard to Yen-Kechang, of the Hong
Hing-tae, he has been in the situation of Hong-merchant, barely seven years, and
has he in so short a time accumulated debts to the large amount of a million
and upwards of dollars? What degree of bad management must it have
263
been that could run to this extent ! The thing is too absurd—too extra
vagant !
If this matter be not faithfully and completely settled, where will be our
compassion to foreigners, and how shall we prevent similar and even worse con
duct in future ? I issue therefore, this order. When it reaches the said senior
Hong merchants, let them, in obedience to it, immediately convene a meeting of
all the Hong merchants, and examine the accounts of Hing-tae, to ascertain
clearly what are the real sums owing by the Hong to foreigners; and let them
equitably and earnestly apply themselves to make some arrangement for the
settlement thereof. Within ten days, let them present a joint report on the
subject, for. my consideration. If they dare to regard this lightly, or to delay
and overstep the period, I, the Governor, will maintain the laws firmly, as the
solid mountains, and will assuredly direct the district magistrate to close the
Hing-tae Hong, and according to the law, apprehend the merchant, that he may
be closely examined and punished. At the same time, the said Senior mer
chants, together with all the other Hong merchants, shall alone be held respon
sible. The property of the foreigners cannot be left without an ultimate guarantee
for its safety.
Let these commands also be enjoined on the foreign merchants, that they,
knowing them, may act accordingly. These are the commands.
Taoukwang, 13th year, 3rd month 19th day (23rd April, 1837.)
To his Excellency the Governor of Canton, Sec, fyc, fyc
A RESPECTFUL Address.—A petition was laid before your Excellency
on the 21st April, respecting the claims of foreigners on the Hing-tae Hong, to
which your Excellency returned a gracious reply, ordering the Senior Hong mer
chants immediately to convene a meeting, and endeavour to form some arrange
ment for the speedy settlement of our heavy claims, and to report on the same
within ten days. Your Excellency was also graciously pleased to add that our
property could not be left without any ultimate guarantee for its safety.
In obedience to your Excellency's commands, conveyed in the above reply,
we sent in to the Senior Hong merchants, full and clear statements of our claim ;
but up to this hour, although nearly two months have elapsed, they have made us
no proposition for the equitable settlement of our accounts; and to the most
earnest inquiries, we can only get the reply, " that Hing-tae has not furnished
his aceounts, and that he objects to the sums claimed by foreigners."
These delays are so directly at variance with your Excellency's commands,
that we are astonished they are ventured upon ; and that too, so far as your peti
tioners can judge, without the Co-hong taking any steps to obtain a correct
knowledge of the accounts.
Looking with confidence to your Excellency's insisting on the previous orders
being at once complied with.
We are, &c,
Signed by Hing-tae's foreign creditors.
The Governor of Canton to the Hong Merchants.
" LET Yen-Kechang of the Hing-tae Hong, be most closely examined as to
what extent his debts have accumulated ; and let it be ascertained, if the claims
sent in by the barbarian traders, exceed the true amounts. Thus, when the tide
ebbs, the rocks appear [i. e. the truth will be discovered]. But while both
parties craftily endeavour to work their own advantage, they only protract the
just settlement, and do not help to bring the matter to a conclusion."
The petition presented the other day by Yen-Kechang evidently diverged
from and glossed over the truth. In my reply to him, I reprimanded him
severely, and ordered him, within a limited period, to produce his accounts for
my inspection.—This is on record.
Now, with reference to the present petition, I have ordered Howqua,
Mowqua, and Pwankequa, to examine well, and act in obedience to the former
reply : Let them cause Yen-Kechang within the therein mentioned limit, to make
out a clear and true statement of all the debts owing by the Hong, and report
264
to me of the same, that I may act accordingly. Let them not permit any delay;
and let this reply be explained to the barbarians for their information and
obedience. Do not oppose.
5th moon, 20th day (June 23nd, 1837.)
The Hong Merchants to the Foreign Creditors.
June 27, 1837.
£§| A RESPECTFUL Communication. We send copy of a statement of com
mercial transactions with you from the Hin^-tae Hong, and the debts due to you
thereon, and of which we beg your careful calculation.
With regard to your suggestion to us the other day, to request a Committee
of two or three impartial persons, to examine the accounts ; —it appears to us,
after careful consideration, that the examination of accounts is a thing totally
different from arbitration, or question of principle, and that it is requisite for the
examination of accounts■, that the parties through whose hands the commercial
transactions have been conducted should be present, as being alone able to know
■the truth of the accounts on any matters of detail. We would therefore request
you to call immediately on Yen-Kechang, to find his brother Yen-Ketseang, that
the accounts may be examined at a personal interview. Then they may be clearly
settled, and all obstinate disputes respecting them may be prevented.
To make this request, it is that we trouble you, and with compliments,
We are, &c,
Signed by twelve Hong Merchants.
The Hong Merchants to the Foreign Creditors.
THIS is respectfully to inform you, virtuous elder brother, that you con
jointly with the other gentlemen, having reported Hing-tae's debts to amount to
upwards of 2,850,000 taels : we compared his accounts and found them not to
agree with yours. Yesterday, however, virtuous elder brother, you, and the other
gentlemen denied the correctness of Hing-tae's statement, and requested us to
select three disinterested individuals to examine the accounts, and thus prevent
confusion and error.
We have therefore requested Messrs. Elliot, Dent, and Green, to act as arbi
trators : and beg also to remind you how requisite it is that you should procure
Yen-Ketseang's attendance : he alone understanding your accounts, having been
the manager of the Hing-tae Hong. Yen-Kechang is both ignorant of your
'language, and of the commercial transactions which passed between you and the
Hong, as he took no part in the sale department.
Requesting you to inform yourself of the contents of the present letter
which we now forward to you.
We are, &c,
Signed by the Hong-Merchants.
The Foreign Creditors to the Governor of Canton.
Canton, July 1, 1837.
TO the Governor of the two Kwang Provinces, a respectful address.
On the 20th June, we presented a Petition in your Excellency, regarding
the delays which had occurred in making any arrangements for the settlement of
the debts of Hing-tae Hong.
In reply you gave orders that the accounts of the Hong should be imme
diately produced.
A statement from Yen-Kechang has been communicated to us by the Hong
merchants, in which all the accounts are disputed and objections raised with no
other object apparently than to protract a just settlement from day to day, and
showing a total ignorance of the concerns of the Hong.
We have therefore now to request that your Excellency will order the return
265
of Yen-Ketseang who has been the manager of all the commercial affairs of the
Hong since its establishment, and who can alone afford the necessary explana
tions, thus will all further evasion be checked.
The Governor of Canton to the Hong Merchants.
July 7, 1837.
TANG, President of the Board of War, and Governor of the two Kwang
Provinces, issues this Edict for the information of the Hong Merchants.
Whereas on the 5th day of July, a petition was presented by the English
merchants, Jardine, &c, stating the debts of Yen-Kechang of the Hing-tae Hong,
toamount to 2,168,348.68 dollars as shown by the accounts which were correct and
not in the least exaggerated ; and whereas Yen-Kechang presented a counter
petition, complaining that the accounts rendered by the foreign traders were
false, and their claims were greatly exaggerated, I commanded the senior Hong
merchants, Howqua, &c to accompany the two parties to the Consoo House and
there arrange the matter between them.
Now the said Hong merchants reported to me, that when they questioned
Yen-Kechang as to which of the accounts he objected to as incorrect, he showed
himself entire ignorantly of the matter, and put them off with evasive answers.
They then selected three barbarians to unite with them to examine the accounts
and to bring them to an equitable settlement. On this, Yen-Kechang selected
indiscriminately from the various accounts, five which he objected to on the
ground of incorrectness ; but they, the Hong merchants, having carefully
examined the said accounts, decided that they could not, in justice, be excepted.
They also prepared two clear statements of all the Hong accounts which they
presented with a petition praying me to examine and decide.
On the same clay, Dent, and other barbarian traders of various nations, pre
sented a petition to the following effect \here follows the petition."]
This coming before me, the Governor, I investigated the matter and
ascertained that balances of purchase money due for goods cannot be classed
under the same head as balances of borrowed money. The Hongs have from
time immemorial been governed by precedents which determine where interest
is allowed and where it is not. But are there really no more intricacies than the
above ?
I have compared the statements of the barbarian traders, Jardine, Dent, &c,
with that of Yen-Kechang and lo ! they differ widely. Which of them is to be
relied upon ?
Let the senior and junior Hong merchants give their whole minds in con
junction with the two parties to examine the accounts and come to some equitable
arrangement. Let the account at onoe be settled, and all disputes be put an
end to.
If these disputes are continued any more, and upon investigation, I find
that Yen-Kechang actually owes what the foreigners state him to do, and yet
does not immediately settle with them, most assuredly he shall be visited with the
most awful punishment. You, the Hong merchants also, must not then plead
ignorance of the subject and say to yourselves : "Why did we not exert ourselves
to settle the business ? "
Besides the warning edict, issued by my orders, by the Pooching and
Gancha-Szes, I now issue this proclamation for the senior Hong merchants,
Howqua, Mowqua, and Pwankequa, instantly to obey.
Let them and their juniors, in conjunction with the disputing parties, proceed
at once carefully to examine all the claims, and ascertain if any just deductions
can be made. Let them ascertain and settle the exact sums owing by the Hong
to foreigners. Thus when the tide ebbs the rocks appear.—Do not show the
least favour, but act with justice.
Let them instantly fix on some plan for repaying the foreigners the sums due
to them and report the same to the two Szes that I may be informed thereof.
There must be no delay, no omission ; the matter is most urgent.
Debts due by Yen-Kechang he alone is responsible for; his servants and
assistants in the Hong must not be troubled.
Let this Edict be transmitted to the barbarian traders for their information
and obedience.
2 M
266
Let there not be the least delay in settling the accounts, on pain of the most
awful punishment.
Haste 1 Haste ! A special Edict.
The Foreign Creditors to the Governor of Canton.
July 17, 1837.
A RESPECTFUL Address. Your Petitioners are compelled again to
bring their claims upon the Hing-tae Hong to your Excellency's notice, for, not
withstanding your Excellency's orders, literally nothing has been done towards
either a settlement of the accounts or of the terms of payments.
A Committee has been named along with the Hong merchants, to investigate
Yen-Kechang's objections to the claims of your Petitioners. If he is serious in
urging these objections, why does he not come forward and substantiate them ;
it is so evidently a manceuvre to put eff time and procrastinate, that your Peti
tioners must entreat your Excellency not to permit such conduct being continued,
and to order the liquidation of the accounts as they are rendered by us, should
Yen-Kechang not prove them incorrect within a day or two, for surely he has had
ample time to examine his accounts.
As arrangements must be made for the transactions of the ensuing season,
your Petitioners are thus urgent, in entreating your Excellency to enforce your
former orders that old and new accounts may not be mixed.
Signed by Hing-tae's Creditors.
The Governor of Canton to the Hong Merchants.
July 20, 1837.
TANG, President of the Military Board, and Governor of the two Kwang
Provinces, issues this Edict to the Hong merchants, for their full information.
On the 18th July, I received a petition from Dent and other barbarian traders,
praying as follows [here follows the petition.]
This coming before me, the Governor, I inquired into the matter, and found
that when the barbarian traders, Jardine, &c, presented a petition some time
ago, I commanded the senior Hong merchants to cause Yen-Kechang to produce
his younger brother, Yen-Ketseang, who was formerly the head manager in the
Hong, but afterwards resigned. They were ordered to unite with the brothers,
and examine and settle the accounts, and devise some means for their liquidation.
They were to report the same to the two Szes that I might be informed thereon.
I also directed the Poo-ching and Gancha-Szes to investigate and urge the speedy
settlement of the accounts.—This is on record.
Let the barbarian traders now wait till Yen-Ketseang makes his appearance,
when they must, in conjunction with the senior Hong merchants, and the two
brothers, give their whole minds to the just and equitable settlement of the
accounts and to determining the exact sums due. Let the three so arrange that
the aS'airs may be instantly wound up. [Until Yen-Ketseang makes his appear
ance] there will be constant wrangling and disputing of the accounts.
Let not barbarians throw impediments in the way of settlement [by their
impatience.] They must not so constantly petition me, for truly they will reap
no advantage therefrom.
Uniting the circumstances, I issue this Edict to the Hong merchants : let
them transmit copies thereof to the barbarian traders, for their information and
obedience.—Do not oppose.—A special Edict.
The Foreign Creditors to the Hong Merchants.
Gentlemen, July 22, 1837.
WE have received from you two Edicts of his Excellency the Viceroy, in reply
to our petition (See Nos. VIII and X) one dated 7th and one the 20th inst., in
both of which the most peremptory orders are issued that the accounts of Hing-
tae Hong should be immediately examined, and some equitable arrangement at
once made by you for the payments of the debts.
267
We have now to request you will inform us what steps you have taken to
obey his Excellency's orders ; in both respects, no proposition has yet been made
to us by you as to the payment of the debts and as these are matters of great impor
tance you must excuse our pressing upon you the necessity of your giving instant
and earnest attention to them.
Yen-Ketseang should be obliged to appear immediately and explain his
objections to the accounts ; still his absence cannot interfere with your obeying
his Excellency's orders and making the necessary arrangements for the payment
of the debts, these being matters in no degree dependent on Ketseang's appear
ance or consent.
His Excellency complains of our importuning him with petitions. But we
are only claiming our rights, and have followed the usual course in our applications.
The nature of next measures will mainly depend on your reply in writing to our
present letter, and what we see actually doing towards a settlement. Should any
unpleasant consequences ensue from our being compelled to draw attention to
the nonfulfilment of his Excellency's orders, they must be attributed to the vexa
tious delays our claims have from week to week been subjected to.
We are, &c,
Signed by the Creditors.
The Hong Merchants to the Foreign Creditors.
July 23, 1837.
THIS is respectfully to inform you that we have requested Messrs. Archer,
Dent, and Green, to meet us in the Consoo-housc at noon, on the 23rd of this
month, for the purpose of examining the accounts of the Hing-tae Hong.
The other gentlemen are also requested to attend.
With compliments, we are, &c,
Signed by the Hong Merchants.
The Hong Merchants to the Foreign Creditors.
July 24, 1837.
THIS is respectfully to inform you, that on the 20th (July 22nd) we received
from our elder brethren their letter of the same date.
We are perfectly conversant with its contents ; but the requests contained
therein are of so weighty and important a nature that we cannot reply to them
without mature deliberation.
We have to request you will inform the other gentlemen hereof, and with
compliments we remain, &c,
(Signed) HOWQUA.
MOWQUA.
PWANKEQUA.
The Hong Merchants to the Foreign Creditors.
July 24, 1837.
THIS is respectfully to inform you, that on the 21st., yesterday, we advised
you per letter, of our having requested Messrs. Dent, Green, and Archer, to meet
us in Consoo on the 23rd, for the purpose of clearly investigating the affairs of the
Hing-tae Hong.
Now it is our opinion, upon reflection, that the accounts are too manifold
and complicated to be examined in one day ; and that it is only by taking them
one by one, in their proper order, that they can be examined.
We therefore beg to inform you that we have requested Mr. Dent and the
other two gentlemen, to meet us in Consoo to-morrow, that we may there mutually
-deliberate how the accounts shall be investigated in their proper order, and also to
settle a day for the general investigation ; of which we will write to inform the
other gentlemen concerned.
2M2
268
We address this to you, requesting you to make known its contents to the
other gentlemen, and with compliments,
We remain, &c.,
(Signed) HOWQUA.
MOWQUA.
PWANKEQUA.
First Meeting of the Committee appointed for the examination oj Hing-tae's
accounts with Foreigners.
Consoo House, Canton, July 25, 1837.
PRESENT, Howqua, Mowqua, Pwankequa■, Dent, Archer, Green.
It was clearly understood that in the investigation of all accounts and
differences, the decision of the Committee should be final as to the amount justly
due to each claimant, and that the sum agreed upon should in no case admit of
future question by Hing-tae, Hong merchants, Mandarins, foreigners, or any
other party.
It was unanimously agreed that the accounts shall be taken up successively
for examination, commencing with the lowest and proceeding to the highest,
excepting those of Dent and Co., Russell and Co., and Wetmore and Co., in
which the three foreign arbitrators are interested, which are to be postponed to
the last.
The Hong merchants present informed the foreign arbitrators, that answers
to Hing-tae's objections to the accounts rendered to the Co-Hong, had been
received from only three or four of the Creditors, and it was therefore decided
that each should be called upon for their explanations, as their respective accounts
came under examination.
To facilitate the business of the Committee it was determined to appoint a
Chairman, whose signature in the name of the Committee to all communica
tions and decisions shall be equally valid as if the same were signed by all the
Members.
The Committee then adjourned to meet to-morrow, July 26th, at 10 a. m.
at the same place.
In the name of the Committee,
LAUNCELOT DENT,
Chairman.
The Foreign Creditors to the Governor of Canton.
Canton, September G, 1 837.
A RESPECTFUL Address —On the 29th July last, we received a com
munication from your Excellency that you had given orders to the Hong
merchants for the immediate examination and liquidation of the debts due to us
by the Hing-tae Hong. These gentlemen now give us to understand that they
have consulted and examined in accordance with your Excellency's orders—but
we can obtain no satisfactory reply from them with respect to the liquidation of
the debts.
We are therefore obliged again to address your Excellency, and to urge you
in the strongest manner, to order the Hong merchants to pay our claims without
further evasion, so that we may not be under the necessity of again troubling
your Excellency.
We have, &c,
Signed by the Creditors.
The Governor of Canton to the Hong Merchants.
September 13, 1837.
TANG, President of the Board of War, and Governor of the two Kwang
Provinces, for the information of the Hong merchants.
269
On the 12th day of this moon (September 12th) a petition was presented
by Dent and other foreign traders of various nations, to the following import.
[Here follows the above petition.]
This coining before me, the Governor, I have inquired into the matter and
find by the records, that Edicts have before been issued, commanding the senior
Hong merchants to settle with the foreigners the true amount of Hing-tae's
debts ;—and also directing the two Sze officers to deliberate and investigate and
make a clear report of the matter to me.
Now this petition prays me to hasten the payment of the debts. For the
last time, I ask, are all the accounts clearly settled or not, and what is the exact
amount of the debts ? In the petition there is not a single word respecting this.
This is decidedly concealing the true face of things from me.
Besides ordering the two Szes to obey the former edicts, and command the
Hong merchants to hasten the settlement of the affairs, I, also considering the
circumstances, issue this Edict.
When it reaches the senior Hong merchants, let them on that very day, in
conjunction with the Hong merchant Yen-Kechang, his brother, and the
foreigners, conscientiously examine and settle the accounts. When they iiave
agreed upon the exact amount of the debts, and, after mature deliberation, have
come to some conclusive arrangement respecting the payment of them, let
them report the same to the two Szes, that I may be informed thereof and act
accordingly.
Let this Edict also be transmitted to the foreigners for their instant
obedience.
There must be no procrastinating delay. Do not oppose. —A special Edict.
The Foreign Creditors to the Governor of Canton.
November 29, 1837.
A RESPECTFUL Address.—Not having had any communication from
the Co-hong since we replied to their very unreasonable proposition to pay the
debts of the Hing-tae hong in fifteen years, we are compelled again to address
your Excellency, and trust that in pressing our claims on your notice, we shall
not be considered as unnecessarily troublesome.
In thus urging a settlement, we cannot but allude to the announcement made
by your Excellency, in conjunction with his Excellence the Fooyuen, that our
trade may be stopped within a month, and our nation's Representative expelled ;
and are now come once more to your Excellency in the hope that you will grant
us that justice which the laws of China, in such cases, have hitherto given
Foreigners, and prevent the adoption of any other measures.
We entreat an early answer from your Excellency to enable us to commu
nicate the result to Her Majesty's Superintendent.
We have, &c,
Signed by the foreign Creditors of the Hing-tae Hong.
The Governor of Canton to the Foreign Creditors.
December 1, 1837.
TANG, Governor of the Provinces Kwangtung and Kwangse, &c, to the
Senior Hong merchants, for their full information.
On the 3rd day, 11th month (30th of November), the foreign merchants,
Jardine and others, presented the following address: — [see above.]
This coming before me, the Governor, I have examined the subject. In
reference to the several sums which the Hing-tae Hong is indebted to the said
foreign merchants, orders have been given for the apprehension of the said Hong
merchant, Yen-Ketseiing, imperatively requiring that he be discovered, and,
with Yen-Kechang, be subjected to severe punishment. Had they the power
of repaying their debts, doubtless, they should be, with strictness, compelled
speedily to repay them in full. But if it rests on all the Hong merchants to
determine on a mode of repaying on their behalf, then, there being to each sum
a creditor, how can these creditors beat down, as to time those on whom the
270
weight of suffering actually falls ? The request made is indeed very far from
being reasonable. In consideration for them, I however command, that they
wait while I instruct the Commissioners of Finance and of Justice, to hasten the
Senior Hong merchants, to come to a speedy determination as to the period to
be prescribed, and to make representation to me, in order to obtain my final
decision. It is my special desire that the said foreign merchants should have
guarantees to their debts, and also, that in effecting this, the Hong merchants
should not be utterly ground down, nor hindrance be thereby occasioned to the
fulfilment of public duties.
As to the Celestial Empire, in its cherishing tenderness towards men from
afar, its benevolence is perfect, its justice without a flaw. But the depraved
foreigners twist awry the laws to subserve their private ends ; and have thereby
drawn down from the Great Emperor reiterated and severe declarations of his
pleasure, that the receiving-ships should be driven away. Yet, notwithstanding
this, the Celestial terrors have not at once been displayed ; but only the Super
intendent Elliot has been commanded speedily to send them away, and order
their return to their country. Is there aught so exalted or so substantial as the
sacred favour herein manifested ?
Because the receiving-ships in the outer seas have so long persevered in
lingering out their stay, I lately limited the said Superintendent to a fixed
period for faithfully paying obedience to the commands. If he still treat them
with contempt and disregard, it will be in truth difficult, in that case, to extend
indulgence, and put off the said Superintendent's expulsion. Whether the
trade shall continue open or not, rests with the Celestial Court to determine,
and will depend on the line of conduct which all the foreigners may adopt for
themselves.
To sum up, I, the Governor, reverently regard the sacred tenderness, and
in conformity thereto, I carefully maintain the dignity of the government. I
commit no act of tyranny or oppression. Neither do I seek surreptitiously to
gain a name for liberality. The foreign debts shall be fully paid to the utter
most mite. The receiving-ships shall be with the utmost severity driven away,
For each purpose, distinct measures are to be carried through. The two have
no relation one to the other.
These commands are forthwith issued to the senior Hong merchants, How-
qua and Pwankequa ; who, on receipt thereof, are immediately to enjoin them
on the said foreign merchants, for their obedience. Oppose not. These are the
commands.
Taoukwang, 17th year, llth month, 4th day fist of December, 1837.)
The Foreign Creditors to the Governor of Canton.
A RESPECTFUL Address.—We received on the 2nd instant from the
Hong merchants, copy of an Edict bearing your Excellency's name, but fear we
do not exactly understand your Excellency's meaning, in as far as our claims
upon the Hing-tae Hong are mixed with transactions of a totally different nature,
and our trade threatened to be stopped, if Captain Elliot does not perform what
we have no power to insist upon.
Your Excellency's repeated promises that our debts shall be paid to the
uttermost mite, have as yet produced us nothing but the most unreasonable pro
position on the part of the Co-hong, to pay our debts in fifteen years. The
usual interest alone, would far exceed the payment ! how, therefore, can such be
considered as anything but a flagrant act of disobedience to your Excellency's
Edict?
Your Excellency draws very justly a distinction between the personal treat
ment that may be due to a fraudulent bankrupt, and that which should be shown
to the sureties; but in the payment of a debt, the sureties take the place of the
bankrupt in every respect. We arc far from wishing to distress the members of
the Co-hong (already so encumbered), but we must remind your Excellency of the
establishment of a fund for the express purpose of meeting such engagements,
and which fund, having had no legitimate drain on it for the past three years,
while it has been regularly levied on the foreign trade, should now have accumu
lated to a very large sum. But when large sums are annually exacted by the
various officers of Government, how is it possible that trade can go on ?
271
We have been involved in these debts by trading with the merchants
specially appointed by the Emperor for the avowed purpose of guaranteeing
foreign debts and guarding them against fraud, and with whom alone we are
permitted to carry on such business. If now we are put off from month to
month, where is the use of such an appointed set of merchants, and where the
Celestial justice which, in restricting our trade to a few men, preventing our
dealing with others, yet refuses either to perform its own engagements, or to
compel the Hong merchants to perform theirs? We may here remark, that the
onlv wealthy members of the Co-hong will neither secure ships nor purchase their
cargoes !
We are thus compelled to call most solemly on your Excellency not to per
mit the Celestial benevolence and justice to be thus rendered nugatory, but that
something more than mere promises and examinations will speedily be carried
into effect.
We have, &c,
Signed by Hing-tae's Creditors.
The Governor of Canton to the Hong Merchants.
TANG, Viceroy of Kwangtung, &c, &c, proclaims to the senior Hong
merchants for their full information.
Whereas, on the 18th day of this moon (15th December, 1837), the foreign
merchants, Jardine and others, having presented a petition to the following
effect.— [Here follows a copy of the petition.'] —and this coming before me, I
have accordingly examined, and find, that in the laws of the Heavenly dynasty
[it is thus written]. " If a man have received money improperly, (such as
stolen money, bribes, &c.), he ought to repay it to its rightful owner, or he may
be sued, and sent to prison for six months ; if, upon examination, it be found
that with all his might he cannot repay, he may escape further prosecution, and on
getting a bond [from his friends] certifying his inability to pay, &c, he may request
forgiveness of [his crime,] and such like." Now, Yen-Kechang and his brother,
in owing a debt, having committed a much lighter crime than that of receiving
bribes or stolen property, and they likewise being entirely unable to repay, it is
plain, that their time of confinement in prison being expired, they also should be
able to avoid further prosecution, and likewise sue for, [and obtain] forgiveness!
But I, the Viceroy, having still further ordered the Hong merchants to consult
upon the subject, and to repay the debt in the stead [of the bankrupts], am truly
looking up to the holy virtue of the Great Emperor as my model, in fostering
the men from afar, not wishing that the said foreigners should be deprived of
their capital ! This is goodness beyond the laws ! truly may it be called the extreme
of benevolence and justice ! How is it, then, that so soon after the receipt of my
reply [to your last petition] you again come with a mass of words, thus whining
at and annoying me ! If you say that the Hong merchants who are to pay the
debt instead [of the bankrupts] are in the place of the bankrupts, and as such
are to be reprimanded for delay, then it is that the Hong merchants are blamed
by you for coming forward to pay the debt—so suppose that the Hong merchants
were to beg of you to excuse them bearing this blame, and on the other hand,
were to agree together not to pay this debt, I would like to ask you, whom would
you go to beg it from? Oh! gross and ignorant that ye are, never was there
stupidity equal to this !
As to what you say about the Hong merchants having received the Consoo
fund for three years without lifting arm [to pay any of it out] whether it is
so or not, the Hong merchants must state the fact, and if the money was applied
for the benefit of the public, or if in [the Consoo Treasury] there is any excess or
not, stop till the Judge and Treasurer have examined and reported form y decision.
As to whether the term or proposal to pay back in shares in fifteen years, be too
long or not, I again refer to my former Edict, where I urged on the principal
security merchants, without delay, to consult together in justice, and determine
with propriety. Wait till I get the document from the Judge and Treasurer for
my investigation.
In relation to a late petition of the said foreign merchants, because their
petition contained the words: — " We have heard that you mean to drive out the
Superintendent [Elliot] and not allow the. ships to open their holds, we beg
272
that in your reply you give us some information upon this point," therefore, it
was in order that they might clearly understand my Edict in reply, I proclaimed
that the two things had no connexion with each other: but the said foreigners
having mixed up the two in begging for an answer to their petitions as stated
above, now turn upon me, the Viceroy, and borrow an excuse [to say that I am]
contradictory, and [mixing up things] far apart! This is, indeed, the most
complete perverseness ! [impertinence?]
I again issue this proclamation, and when it reaches the said senior security
merchants, let them immediately enjoin it upon the said foreign merchants, that
they may obey accordingly, and let them further command them, not again at
their own will and pleasure, thus foolishly present [petitions?]
I, the Viceroy, grasp the laws for rooting up [lit. hoeing up] of vagabonds ;
if they make trials [of authority] with me, I fear it will be difficult to deal lightly
with them !
Taoukwang, 17th year, 11th month, 30th day (December 17, 1837.)
The Judge's and Treasurer's Report respecting Hing-tae's debts.
WANG, the Judge, and Ah, the Treasurer, issue again their orders for the
firm and satisfactory arrangement regarding the payment of debts.
According to the petition of the Hong merchants, they had, after consult
ing the foreigners, resolved to discharge the whole of Hing-tae's foreign debts,
by instalments, within the space of fifteen years. But, as the said foreigners
were still dissatisfied, and dunned them with the request of shortening the term
of years, they had, on receiving orders to that effect, called a meeting of all the
merchants, and now make known, in a clear statement, the result of their
deliberations. Whilst accommodating themselves to the wishes of the foreigners,
they agreed and settled to pay, within twelve years, as in the case of the firms of
Hwuylung, Ta-ching, Fuhlung, but the foreigners would only admit of five or
six years, and firmly insisted upon it.
In examining the settlement of debts owed by former bankrupt houses to
foreigners, we find that the annual instalments paid were above 200,000 dollars ;
but matters are now not as formerly : there was then the trade of the Company,
which yielded great profits, and no other instalments were to be paid. But just
now, every merchant has his own private debts, and Hing-tae and Fatqua, more
over, owe to Government about 400,000 taels ; if, therefore, the term of paying
Hing-tae's foreign debts is shortened, one will be cared for and the other neglected.
A statement of Kingkua's very heavy debts is now given ; and, if matters are to
be only partially adjusted, whilst, as formerly, additions are made to the said
Hong's foreign and public debts, and by repeated requests, brought forward to
make up deficiencies, the affairs will be more involved, and the whole trade ruined.
" Whilst sending in a statement of the terms of years, during which foreign
debts have been in former years discharged in instalments, we beseech our supe
riors graciously to sanction this settlement, and to permit that the debts be paid
in twelve years ; thus, the public and the foreign debts may be equally liquidated ;
and the merchants, at the same time, will be a little relieved, and recover
strength."
We, the Sze officers, on receiving this statement, with a list of dividends paid
in former years, found on examination, that the Celestial dynasty graciously
permitted foreign barbarians to come to Canton and barter : according to the
established regulations, they are permitted to exchange goods with Hong mer
chants only. It is incumbent on foreign merchants, at the end of each trading
season, to give in a clear statement to the Hoppo, whether there are any out
standing debts with the Hongs, which is recorded as evidence. If it should
happen that such a Hong fails, the payment of the claims falls upon the security
merchants : but if no clear statement is forwarded, the payment cannot be urged
or answered.
If native merchants, in defiance of the prohibitions, borrow of, or lend to,
foreign traders, and thus enter into clandestine and illegal connexions, they are
sentenced according to the law, against forming correspondence with foreigners,
and fraudulently borrowing or lending : the money thus advanced will, after
due investigation, be confiscated by Government.
273
In 1829, an English Chief petitioned for the establishment of trading regu
lations. In that document he requested that neither a new nor old Hong
merchant should pay the debts of other bankrupt Hongs, no matter whether
contracted with native or foreign merchants; but that every Hong should pay-
its own debts; thus the evil of too much trusting the Hong merchants might be
eradicated. The officers examined the subject of this Petition, and agreed to it,
obtaining the sanction of a former Governor in an Edict to that effect, which is
on record.
The annual account of Hing-tae's debts was not, according to law, clearly
stated ; the claims were not brought forward at an early period ; but the said
Hong was allowed to involve itself, during the space of seven years, to the
amount of upwards of 2,320,000 dollars. We are informed that a certain
foreigner, Jardine, is a creditor to the amount of 1,700,000 dollars and upwards.
One does not know how that■ foreigner, in dealing with Yen-Kechang's younger
brother, had so much confidence in him that he could give him such an enormous
credit ; thus, year after year, he was silent and said nothing about it.
If we were to act in conformity to regulations formerly established and
agreed upon, no payment ought to be made at present. But now the Hong mer
chants have received orders to pay in instalments, and they do their utmost to
manage things accordingly. On examining the arrangements for clearing the
accounts, made repeatedly in former years, we find that a term of twelve years
was agreed upon and sanctioned to clear the whole amount : thus the period for
the payment of the debts owing will not be too long, and a full payment is
certain.
The Government officers act thus graciously in imitation of the Great Em
peror, who cherishes the utmost tenderness towards foreigners, and, considering
they come in search of gain, will not permit them to suffer the least loss ; it is
only on this account that an alteration is made, and compassion shown by making
arrangements. If they are endowed with Celestial goodness, they will instantly
be imbued with gratitude ; and how can they, to the last, harbour in their breasts
a heart of wood and stone.
But if they do not accede to receiving payment in twelve years, and still
wish to urge a term of five or six years for the clearance, one does not know
what interpretation is to be put upon their conduct ; the more so as the amount
of these foreign debts is enormous ; and the annual payment in instalments,
sanctioned in former years, did not exceed the sum of 200,000 dollars and
upwards.
Now the said merchants are unreasonable, and are wedded to their opinions:
their minds arc therefore grievously perverse. If the Hong merchants, on this
account, reverse their former settlement, and refuse to make the payment, we
presume to ask where would the said foreign merchants urge their demand, and
whom would they prosecute for payment? Therefore, strenuous efforts ought to
be made for adjusting and settling these claims ; and measures be taken to manage
the matter accordingly.
We issue at the same time our orders to the said Hong merchants to call a
meeting of the foreign merchants, to examine into the preceding circumstances,
and to point out to them the orders ; let them most distinctly acquaint them with
the commands ; and again and again tutor and guide them, that by a mutual
understanding, the term of years may be fixed. Moreover, let them send a report
to us, that we may examine and forward the same. Do not disobey.
12th moon, 3rd day (29th December, 1837.)
The Foreign Creditors to the Governor of Canton.
December 30, 1837.
YOUR Excellency's Edict of 17th inst., in reply to our petition of 15th,
was handed to us by the senior Hong merchants, and at the same time a proposal
was made to liquidate the debts of the Hing-tae Hong in twelve years— a pro
position unjust, in as far as it is directly contrary to the established practice of
the Celestial Empire, and the interpretation former Governors have put upon
the laws of the Great Emperor, and most unreasonable in itself, seeing that the
usual interest during the proposed period, would amount to twice thecapital debt.
We have most carefully examined your Excellency's observations respecting
2 N
274
the "fixed laws of the Heavenly dynasty," and beg humbly, but firmly, to state
to your Excellency, that the laws quoted are not those applicable to foreigners—
which, we need not point out to your Excellency, are entirely distinct from those
laws by which the subjects of the Empire are regulated.
Your Excellency's reasoning upon the liability of the Co-hong, we have
only to place in context with the Imperial orders, which distinctly engage that all
foreign debts shall be paid, and your Excellency has been graciously pleased to
repeat this engagement on the part of Government more than once. Why, then,
should your Excellency ask us, " from whom would you recover, should the Hong
merchants seek to be preserved from the consequences of thus being, by the laws,
pointed out as the securities and compulsory payers of bankrupt Hong debts?"
The answer is plain and distinct : we have the Emperor's repeated promise, as
well as your Excellency's, that our claims shall be paid to the uttermost mite.
The Celestial Empire is our debtor. —The Hong merchants hitherto have been
the channel of payment, but we look to your Excellency's making such payment,
and leaving the mode to be settled as the Celestial justice may deem most right, it
not becoming us to point out to your Excellency, the manner by which the empire
may discharge its debts.
With regard to the assertion that a Consoo duty has been levied, for the
purpose of paying Hong's debts to foreigners, for three years, without any drain
lor this purpose, it is strictly and positively true ; nearly four years have now
elapsed since any payment to foreigners has been made, and justice requires that
the sum so collected should be immediately appropriated to this liquidation of
existing foreign debts. There is no law of the Imperial dynasty warranting the
appropriation of this tax to any other purpose.
In conclusion, we must remind your Excellency, that former claims of a
similar nature have frequently been paid,—this is no new affair. The sums
formerly paid for a series of years, have been upwards of five lacs of dollars per
annum ; one year, 1829, indeed the amount approached six and a half lacs of
dollars ; a similar paympnt for the next four years would pay all our claims with
interest ; for how, in cutting off so large a proportion from our claims, can your
Excellency keep your promise to pay us the uttermost mite?
Trusting your Excellency will spare us the unpleasant task of appealing
either to the Emperor, or to our own August Sovereign, for the settlement of
these our just claims on the Chinese Empire,
We are. &c,
Signed by Hiug-tae's Creditors.
The Governor of Canton's reply to the Petition of Hing-tae's Creditors.
January 6, 1838.
THE compassion towards foreigners consists in benevolently making
arrangements for paying [the capital], but there is no regulation for discharging
the interest.
The Celestial dynasty maintains justice to the utmost, and is certainly
never weary of exhibiting favours. According to previous arrangements made
by the Hong merchants, the debts of Hing-tae were to be paid within fifteen
years. But since this period was somewhat distant, I gave orders for changing
the term to twelve years, during which time the whole should be cleared. Wait
then until the Sze [Treasurer and Judge] have been urged to draw up a full
statement to the Great Emperor, until His Majesty's pleasure for my guidance
be known. There is no necessity for making much ado about this matter.
Orders are hereby issued to the Hong merchants, to acquaint the said
foreign merchants with my commands, that they may observe them. Do not
disobey. These are my orders.
The Foreign Creditors to the Governor of Canton.
A Respectful Address, Canton, March 21, 1838.
SOME of the Subscribers, British Merchants, addressed your Excellency
nearly a year ago, respecting the large debt due to us by Hing-tae, and your
■
275
Excellency has since given repeated orders for its payment ; but up to this time
we have received no part of it. The Hong Merchants have indeed proposed to
pay it off in nine years, beginning with next year, which will be ten years from the
adjustment of the accounts ; but we cannot consent to such a distant payment.
Besides Hing-tae, your Excellency is aware that there are other Hongs also
indebted to us, and we have urged the Security Merchants to arrange for the
payment of their debts at the same time, that we may know with whom we may
trade safely and whom not, and guard, as far as we are able, against loss in
future.
We bring our property from a great distance to trade with this Empire, and
we are compelled by its laws to place it in the hands of a very few Hong Mer
chants nominated by the Emperor. It cannot be that His Majesty intends that
they should retain our capital, until it has nearly doubled itself by the accumu
lation of interest ; and then pay us back only the principal. It may be that
Hing-tae has dissipated our money ; but how can we ascertain this ? We cannot
go to his house or village to ascertain if he have secreted any money ; and even
your Excellency's order has failed to produce him here for examination.
The Judge and the Treasurer reported (12th Moon, 13th day,) as a reason
to delay payment of these debts, that matters are not now as formerly ; there
was then the trade Company which yielded great profits. This is true ; but our
profits also are not the Company's, and we cannot afford to dispense with our
trading capital. The payment of the Hong Merchants' debts, besides, has never
depended entirely upon their profits, but upon extra duties upon the foreign
trade, imposed for that purpose, and the Hong Merchants now propose an addi
tional duty to pay the present debts. Where then is the injustice to them ? It
seems to us, as to the Judge and Treasurer, that some other system is required
to meet the exigencies of the present trade ; but more for our benefit than for
the Hong Merchants. As we do not feel competent to discuss the question with
your Excellency, we have referred it through Her Majesty's Chief Superinten
dent to our own Gracious Sovereign, who will, we humbly hope, communicate
upon the subject with your Emperor.
In the mean time we shall gratefully receive any portion of our claims which
your Excellency may be pleased to order to be paid, and be prepared to listen to
the suggestions which the Hong merchants may propose.
(Signed)
Drnt and Co. Eglinton Maclean and Co.
Bell and Co. Fox, Rawson and Co.
Dirom and Co. W. Henderson.
J. and W. Cragg and Co. Pro Robt. Wise Holiday and Co.
Daniell and Co. Wm. Taos. Kinslky.
Gibb, Livington and Co.
Inclosure 4 in No. 117.
Captain Elliot to Mr. Inglis.
Sir, Macao, March 27, 1838.
I HAVE the honour to acknowledge your letter of the 24th instant, with
its inclosures : they shall be transmitted to the Rigid Honorable the Secretary
of State for Foreign Affairs in the course of a few days, one copy by the way
of Egypt.
I feel warranted in assuring the Memorialists that the urgent importance
of their appeal to His Lordship will command his immediate attention.
Independently of the large amount of British Capital actually at stake,